Introduction
In the wake of a two-day policy meeting, stock futures traded slightly lower on Wednesday, as investors anticipated that the Federal Reserve would keep interest rates unchanged. The conclusion of October marked the third consecutive month of losses for the S&P 500, leaving Wall Street looking for a fresh start in November.
Key Market News
Advanced Micro Devices (AMD) Reports Strong Q3 Earnings but Falls Short on Revenue Forecast
Advanced Micro Devices (AMD) exceeded analysts’ expectations by reporting third-quarter adjusted earnings of 70 cents per share, surpassing estimates by 2 cents. However, the chip-maker’s revenue forecast for the fourth quarter fell shy of expectations. Projecting revenue to be approximately “$6.1 billion, plus or minus $300 million,” AMD’s forecast disappointed Wall Street, which was anticipating $6.4 billion in revenue. AMD CEO, Lisa Su, expressed optimism about the data-center GPU products, predicting about $400 million in revenue for the fourth quarter and expecting them to reach $2 billion by 2024. Despite the positive earnings, AMD shares declined by 2.6% in premarket trading.
Paycom Software (PAYC) Faces Steep Decline in Shares after Lower Than Expected Revenue Forecast
Paycom Software witnessed a significant drop in shares, plunging by 34%, following the announcement of their fourth-quarter revenue forecast. The provider of cloud-based human capital management software predicts revenue to range between $420 million and $425 million, falling below analysts’ estimates of $452 million. Additionally, Paycom’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be between $169 million and $174 million, compared to market expectations of $189 million.
Conclusion
In conclusion, the Fed’s decision to maintain interest rates left the stock futures slightly lower. Meanwhile, Advanced Micro Devices impressed with strong earnings but disappointed with their revenue forecast. Paycom Software faced steep declines in shares after failing to meet revenue projections. As November begins, investors are eagerly watching the market for any signs of recovery.
Solar Panel Company First Solar Reports Strong Q3 Earnings
First Solar (FSLR), a leading solar panel company, announced its third-quarter earnings, exceeding estimates. However, its revenue fell short of forecasts, with $801.1 million compared to an expected $904.1 million. Despite this, the company remains optimistic, raising the lower end of its 2023 earnings guidance. As a result, First Solar’s stock experienced a 4% increase in premarket trading.
Match Group Faces Setback as Q4 Revenue Falls Below Expectations
Match Group (MTCH), the parent company of popular online dating platforms Tinder, Hinge, and OkCupid, saw its stock decline by 8% after revealing that fourth-quarter revenue is expected to range between $855 million and $865 million. This forecast disappointed analysts, who had estimated revenue at $894.2 million. Match Group also stated that it anticipates revenue growth for the full year to be at the lower end of its guidance range.
WeWork Faces Potential Bankruptcy amidst Financial Troubles
WeWork (WE), a flexible-office-space provider, suffered a significant setback as its stock plummeted by 34% to $1.51. Reports from The Wall Street Journal indicated that WeWork plans to file for bankruptcy as early as next week. While these plans are not yet confirmed, anonymous sources familiar with the matter were cited by the Journal.
Yum China Struggles with Softening Consumer Demand
Yum China (YUMC), the owner of renowned fast-food brands Pizza Hut, KFC, and others operating in China, reported disappointing third-quarter earnings that fell short of expectations. Additionally, the company acknowledged “observed softening consumer demand.” This led to a 12% decline in stock value.
Livent Experiences Decline due to Missed Expectations
Livent (LTHM), a lithium-ore miner, faced a 2.7% drop in stock value after failing to meet third-quarter earnings and revenue expectations. As a result, the company also reduced its revenue guidance for the full year.
Upcoming Earnings Reports from Prominent Companies
On Wednesday, several prominent companies are expected to release their earnings reports. These include Qualcomm (QCOM), CVS Health (CVS), Airbnb (ABNB), Humana (HUM), PayPal (PYPL), Kraft Heinz (KHC), Mondelez (MDLZ), Electronic Arts (EA), DuPont (DD), DoorDash (DASH), Etsy (ETSY), and Albemarle (ALB).